WORK Medical Plummets 24% on Reverse Split and Regulatory Turmoil – What’s Next?

Summary
• WORK Medical (WOK) slumps 24.49% to $2.22, hitting a 52-week low of $2.16
• Nasdaq delisting threats and a 1-for-100 reverse split dominate headlines
• Sector peers like Medtronic (MDT) drift lower, signaling broader medical device sector fragility

The stock’s collapse reflects a perfect storm of regulatory pressure, liquidity challenges, and investor skepticism. With a 52-week range of $2.16–$60,000 and a dynamic PE of 103.75, WOK’s technicals and fundamentals align with a bearish narrative. Today’s intraday swing from $2.80 to $2.16 underscores extreme volatility.

Reverse Split and Regulatory Scrutiny Trigger Sharp Selloff in WORK Medical
WORK Medical’s 24.49% intraday plunge stems from a 1-for-100 reverse stock split effective December 29, 2025, and ongoing Nasdaq compliance issues. The company received a delisting determination letter in October 2025, with a final compliance extension granted in December. Recent news of a $2.9 million registered direct offering and a strategic partnership with Shanghai Chartwell Medical Device Co. failed to offset investor concerns over liquidity and governance. The reverse split, while aiming to stabilize the share price, has instead amplified short-term panic, with traders interpreting it as a last-ditch effort to avoid delisting.

Medical Devices Sector Under Pressure as Medtronic Slides 0.24%
The broader medical devices sector mirrors WOK’s struggles, with Medtronic (MDT) down 0.24% intraday. However, WOK’s collapse is magnified by unique challenges: a 6,853% turnover rate, a 52-week high of $60,000 (now erased), and a dynamic PE of 103.75. While sector peers face moderate headwinds from macroeconomic factors, WOK’s regulatory and liquidity risks create a distinctively bearish profile.

Technical Deterioration and Volatility: A Bearish Outlook for WOK
• RSI: 36.01 (oversold)
• MACD: -0.59 (bearish divergence)
• Bollinger Bands: Lower band at -2.99 (breakdown confirmed)
• 200-day MA: $1.26 (price below by 57%)

Technical indicators confirm a short-term bearish setup. Key support levels at $2.21 (52-week low) and $1.95 (Bollinger middle band) are critical. The 1-for-100 reverse split may temporarily stabilize sentiment, but without a catalyst like a major partnership or financing breakthrough, the stock is likely to test $1.26 (200-day MA). No leveraged ETFs are available for direct correlation, but the iShares U.S. Medical Dev. ETF (IHI) could offer indirect exposure to sector sentiment.

Backtest WORK Medical Stock Performance
The backtest of WOK's performance after a -24% intraday plunge from 2022 to now shows mixed results. The 3-Day win rate is 46.86%, the 10-Day win rate is 46.86%, and the 30-Day win rate is 42.86%. The maximum return during the backtest period was 4.91%, with a maximum return day at 33.

Urgent Action Required: WOK Faces Critical Support Test and Regulatory Uncertainty
WORK Medical’s 24.49% drop signals a high-risk environment for investors. Immediate focus should be on the $2.21 support level and regulatory updates from Nasdaq. A breakdown below $1.95 would validate a long-term bearish trend, aligning with the 200-day MA at $1.26. Sector leader Medtronic’s -0.24% decline highlights broader medical device sector fragility. Aggressive short-sellers may target $1.26, while long-term holders should await a catalyst—such as a successful compliance resolution or a major partnership—to justify a rebound. Watch for Nasdaq’s final delisting decision and the company’s ability to secure liquidity.